Against threats of the risk of a recession due to the trade war, UN Secretary-General Antonio Guterres declares he "hopes sincerely" that there will not be one because of the consequences it would bear on the world's poorest.
"I hope very much that we will see no recession, as a recession would have dramatic implications, above all for the poorest people on our planet," he said on Tuesday before hours for President Donald Trump's "reciprocal tariffs" to take effect.
"Trade wars are very bad. No one is a winner of a trade war. Everyone tends to lose", he said as he addressed newsmen.
He went on, "I'm especially concerned with the most vulnerable developing countries, where the effect will be more catastrophic."
Trump has imposed tariffs of 104 per cent on China that would take effect at midnight Wednesday, and Beijing has promised retaliatory tariffs of 34 per cent.
UN Conference on Trade and Development (UNCTAD) admitted that the "need for trade for reform is clear.".
UNCTAD Secretary-General Rebecca Grynspan stated, "Global trade rules need to change to respond to today's issues, but they need to do so with predictability and development at their heart, safeguarding the most vulnerable".
"This is a moment of cooperation, not escalation," she added.
The World Trade Organisation (WTO) Deputy Director-General Angela Ellard stated that the organisation's initial assessment indicates that recent US and other countries' tariff actions may result in a contraction of global merchandise trade volumes by about one per cent this year.
That would be a sharp downward revision of almost four per cent from the previous estimate of three per cent growth.
In spite of the efforts at undercutting the WTO system, Ellard stated that "74 per cent of global trade still flows under WTO Most-Favoured-Nation (MFN) terms".
This indicates that the WTO continues to be relevant, and the multilateral system remains effective, she noted.
China and Canada have already taken the first step towards availing themselves of their grievances against the US, according to the WTO.
They have called for consultations in WTO terms that would provide the parties with 60 days within which to negotiate and avert litigation.
They could seek adjudication by a panel if that didn't work.
Read also| Trump Optimistic on Gaza Peace, Netanyahu Pushes for ‘New Deal’ on Hostages
Read also| Beijing Rebukes Trump's Additional Tariff Proposal, Citing Repeated Errors
